SENATE TRANSPORTATION COMMITTEE February 11, 1997 1:30 p.m. MEMBERS PRESENT Senator Jerry Ward, Chairman Senator Gary Wilken, Vice Chairman Senator Lyda Green Senator Georgianna Lincoln MEMBERS ABSENT Senator Rick Halford COMMITTEE CALENDAR Presentation by DOT/PF Commissioner Perkins WITNESS REGISTER Joseph Perkins, Commissioner Department of Transportation & Public Facilities 3132 Channel Drive Juneau, Alaska 99801-7898 ACTION NARRATIVE TAPE 97-3, SIDE A Presentation by DOT/PF Commissioner Perkins Number 001 CHAIRMAN WARD called the Senate Transportation Committee meeting to order at 1:30 p.m. and invited Commissioner Perkins to begin his overview of DOT/PF. COMMISSIONER JOSEPH PERKINS thanked the committee for the opportunity to discuss DOT/PF. He introduced the following staff present: Kurt Parkan, Deputy Commissioner; Tom Brigham, Director of the Division of Statewide Planning; and Gary Hayden, System Director of the Marine Highway System. Commissioner Perkins noted that the committee had been given the FY98 Budget Overview booklet which provides additional information. Commissioner Perkins reviewed the accomplishments of DOT which included chip sealing over 78 miles of National Highway System (NHS) highways with mainly federal funds. That chip sealing extends the life of the pavement about four or five years. This is the first time federal money has been used for surface maintenance. Further, 32 miles of existing gravel roads were paved in order to reduce maintenance costs. During the year, 50 new lane miles were added to the highway system. Five miles of new road was completed and links the City of Kasaan with the Prince of Wales highway system. In Fairbanks, 17 miles of new road was constructed which accesses the Steese - White Mountain recreational system. The IS was completed for the Whittier access project and the first construction contract should be awarded within the next few weeks. DOT transferred four roads to local governments which is one of the department's goals. DOT/PF dealt with the extensive flooding this year; the Hunter Creek bridge was replaced and the Seward airport was saved from washing out. Commissioner Perkins emphasized that the department issued a new policy of using chip seal and high flow asphalt in areas of light traffic, permafrost, and remote areas where hot mix plants are not available. This new policy will be implemented in rural areas in particular. Number 162 In response to Senator Green, COMMISSIONER PERKINS explained that the only difference between high floating and chip sealing is that, high floating uses a base material that is dusty and dirty. Asphalt is sprayed and then rock is placed on top of that. The chip sealing uses clean chips. He noted that the two types of asphalt are different. SENATOR GREEN commented that many local roads in the Mat-Su that she thought were done with chip seal were not successful; was there a different chip seal in the last eight years? COMMISSIONER PERKINS said that much progress had been made in asphalt. An emulsion, water-based, type asphalt is used. The Canadians are very successful with this type. Commissioner Perkins pointed out that the base is the determining factor; a bad base will come up. The same failure with hot mix results in a total loss. Emulsion asphalt is easy to repair. With regards to a cost comparison, the emulsion type asphalt is roughly 50 percent cheaper. CHAIRMAN WARD inquired as to the cost comparison between D1 and non clean chips and the life expectancy of each. COMMISSIONER PERKINS said that the chips are more expensive, but he did not know specifically. The life expectancy is about the same. The D1 is what goes under the pavement and is very dusty for the first two or three weeks. Number 225 COMMISSIONER PERKINS emphasized that DOT/PF is utilizing every type of technology advance possible. In particular, construction is being reviewed in order to determine how best to maintain it. With regards to the Anchorage and Fairbanks airports, both continue to grow. In 1996, Anchorage International Airport had over 2 million plane passengers. Fairbanks International Airport had over 375,000 passengers. Anchorage International Airport is ranked number two in the U.S. with regard to international freight. Fairbanks International Airport ranks number nine in the U.S. Commissioner Perkins informed the committee that nine percent of all Anchorage employment is directly related to airport functions. It is very clear that both these international airports are economic engines for economic growth and therefore efforts to continue being competitive should continue. Commissioner Perkins noted that the Governor's proposed jet fuel tax will help continue the success. In the rural airports, a ranking system has been established in order to determine which airports should be built. Previously, airports have been built according to which the FAA indicated were desirable. The scoring system will attempt to identify the most needy communities with airport projects. The FAA was so pleased with this grading system that the system is being reviewed in Washington, D.C. for national implementation. Commissioner Perkins noted that last year, the National Transportation Board recommended that radio communication on rural airports be improved. A procedure to improve this situation has been implemented. Number 277 Not much more than emergency work has been accomplished with the harbors. Two facilities were turned over to the local governments in Craig. Commissioner Perkins said that the department continues to rely on the Corp of Engineers program for harbor facilities, although this program has been reduced in the past and future reductions are expected. This needs review in order to determine a better state-run harbor program because many of Alaska's harbors are in disrepair. Some emergency maintenance such as that for a life-threatening electrical problem at Fort Lyons have been done. With regard to the Marine Highway System (MHS), construction has been initiated on the new vessel, Kennicott. Commissioner Perkins reported that the vessel was on schedule and on budget. A photo of the Kennicott was shown to the committee. The ship is being built by modules in three different shipyards; the modules are then shipped to one shipyard where they are assembled. In response to Senator Wilken, Commissioner Perkins stated that the ship was worth about $80 million. Commissioner Perkins informed the committee that the department would decide within the next month or so what to do with the Malaspina. An extensive study is being undertaken to review the costs of committing the Malaspina to a day boat status, running a different route, selling the boat, continuing maintenance, and rehabilitating the vessel. The Malaspina will not be able to serve Prince Rupert as of next year due to Safety of Life at Sea (SOLAS) requirements. Twelve to fourteen million would be required to upgrade the Malaspina to international standards. This decision must be made quickly because the schedules for 1998 are being reviewed now. Also a new reservation system should be complete by May. Number 330 Commissioner Perkins noted that an effectiveness review of the department is being undertaken in order to determine where and how to proceed in the future. Further, the Southeast Transportation Plan is being developed to attack the question of what should be constructed in the future. The Alaska Long-Range Transportation Plan has begun; this is a federal requirement. The federal government has commented that the long-range plan is a model for what is desired of other states. Regional plans at the headquarters are also being done. Commissioner Perkins said that at the same time this regional planning is occurring, local communities should also be doing local transportation plans. For the smaller communities that do not have the staff for such implementation at the local level, DOT requests a contribution from the community to assist the community with the local plan. Planning is necessary due to the federal requirements as well as the need for the state to know what and where to build. The draft EIS for Juneau access has been completed and forwarded to the Federal Highway Administration (FHWA) who will review and comment. After the draft is returned, it will be released to the public for hearings and comment. After the public comment period, a preferred alternative will be determined for the final EIS. Commissioner Perkins informed the committee of the location study for a road connection to Rampart. The Rampart location study should be completed within the next few months and will determine whether an EIS would follow and potential problems. Number 405 Commissioner Perkins reviewed the following positive accomplishments of DOT: (1) The elimination of 58 CIP positions from DOT. (2) The electronic billing of FAA. (3) The reduction in the janitorial service in the Anchorage Airport by 50 percent. (4) The purchase of a waterless street sweeper for Anchorage. (5) The change of hot mix type that is more porous. (6) Sanders for winter maintenance have been equipped with computer controls. (7) Anti-icing compounds are being tested in Petersburg. With regards to the change of hot mix type, Commissioner Perkins noted this type would reduce the rutting problem. He emphasized the need to use light-weight studs, but most importantly to ensure that studs are off vehicles in the summer when wear to the roads is the most detrimental. A dollar amount should be attached to the current fix it fine in order to encourage people to take off studs in the summer. Commissioner Perkins informed the committee that a task force would be established in order to review winter maintenance from the standpoint of the state. The task force will attempt to determine a better and cheaper way to do winter maintenance. The task force is also reviewing refinements in paperwork. Commissioner Perkins informed the committee that DOT/PF had a RIP in which 97 would be eligible. Number 465 Commissioner Perkins acknowledged that the department did have some problems which should be addressed. The main problem is unfunded essential maintenance and operation which are not being performed on the roads, airports, harbors, and facilities. He was pleased that the Legislature was going to appoint a legislative task force to review the deferred maintenance problem. He offered his support and assistance with deferred maintenance. The roads are also a problem for DOT. Federal funds cannot be used for guard rail repair, signs, striping, culvert repair, brushing, etc. The lack of maintenance in these areas creates problems in the future that could lead to replacement projects. The federal government is concerned with Alaska's road maintenance and a letter stating such was just received. Commissioner Perkins believed that the FHWA letter could have an effect on ISTEA allocations. The FAA also sent two letters concerning the safety of operations of rural airports. Basically, some people are on 24 hour duty seven days a week at these certified airports. Airports like those in Sitka and Bethel are effected by this. The operations at the certified airports were reviewed after receiving the FAA letters. The deficiencies involve the number of people and the tremendous amount of paperwork. The seriousness of this problem led to the transfer of $800,000 from road and facility maintenance to rural airports. Commissioner Perkins acknowledged that this transfer would create more difficulty with road maintenance, but the priority is the safe operation of these airports. Number 517 Commissioner Perkins addressed the financial status of DOT. The existing organization is not efficient. Therefore, an effectiveness review of DOT in order to determine how to make the operation more efficient will be undertaken. Commissioner Perkins believed that the functions of DOT should be realigned, placing more people on maintenance and less in the administrative functions. For the first time, this review will also include federal CIP personnel. There are two classes of employees in DOT: one group is funded by the general fund and they do not have stable jobs, while the other group is funded with federal funds and have stable jobs. Any savings on the federal side can be applied to projects. Commissioner Perkins informed the committee that the initial review should be completed in May and implementation should occur in July 1997. DOT's proposed budget expects $100,000 savings from this review, however Commissioner Perkins expects more savings than that. The transfer of the Division of Weights & Measures to DOT will provide one-stop shopping. He hoped the committee would support the transfer. Number 562 Commissioner Perkins informed the committee that Alaska normally receives $65 million from FAA per year for airport construction. The nationwide budget for 1997 was $1.5 billion, the budget as submitted from the President is for $1 billion which is a 33 percent reduction in the FAA program. This equates to a 30 percent, $20 million, reduction in Alaska's airport program. Furthermore, the federal government is discussing the possibility of these cuts only being applied to international airports because international airports have other sources of funding. Commissioner Perkins expressed concern with the fact that two-thirds, $35 million, of the money for the 1997 program has not been received. The ticket tax which feeds the Aviation Trust Fund stopped as of the first of January. Furthermore, the law states that money collected after January 1 cannot be placed in the Aviation Trust Fund. The FAA has stopped all projects. Commissioner Perkins noted that Congress is attempting to expedite the schedule in order to reinstate the 10 percent ticket tax on airlines to feed the trust fund. He believed Congress would accomplish that. TAPE 97-3, SIDE B The future of airports encompasses more funding reductions, particularly in the international airports. Number 583 ISTEA provides $205-$220 million a year for construction. Those distributions will be reauthorized this year. Commissioner Perkins said that he had been told by the Congressional delegation that this will be one of the most contentious issues this year. The discussion also indicated that there may not be a bill by the first of October. Currently, Alaska is not a target of other states. Commissioner Perkins hoped Alaska would continue to have the same funding. With regards to the highway reauthorizations legislation, there could be demonstration projects. DOT determined that the rebuilding of the Dalton Highway would compete nationally for a demonstration project because it serves the largest oil field in the U.S., a gas line will eventually be constructed, and it is the only portion of the NHS that is gravel in the U.S. The Dalton Highway is currently scheduled for a rebuild over the next 15 years, therefore a demonstration project would leave room for other projects. SENATOR LINCOLN noted that Close-Up students were present. COMMISSIONER PERKINS discussed the Kennicott ferry for the students. Number 499 SENATOR LINCOLN congratulated Commissioner Perkins on the proposed effectiveness review. The transportation plan is a very important document that will shape the future of Alaska. Senator Lincoln pointed out that 51 percent of all roads and highways in Alaska are in the northern region, her district, which covers such a large area. She expressed concern with placing the Division of Weights & Measures in DOT. Senator Lincoln was also concerned with the lack of maintenance on the highways and the safety consequences. For example, Chenega Bay had a life and death emergency and with no lights on the airport the plane had difficulties landing. On the other end of the spectrum, McCarthy has a large airport that is not necessary. Senator Lincoln stressed the need to do business differently. Senator Lincoln posed the following questions. What does the lack of a state highway program mean to Alaska? Is the state highway program the same as a long-range transportation plan? From where do the project nominations come? How was the project nomination deadline advertised, especially in the rural areas where there is no city manager or planner to write such projects? Senator Lincoln requested more information regarding the rural ranking system. What happened to the recycling of tires for mixing in the roads? She mentioned the light-weight studded tires. What is being done about dust control? The vast majority of Senator Lincoln's district is concerned about the health implications of the dust. Number 414 COMMISSIONER PERKINS noted that Alaska and Rhode Island are the only two states that do not have a state highway program. Under the state highway program, the state does work on state roads with state funds and did not wait for the federal government. Prior to ISTEA, the federal government did not fund all roads. Commissioner Perkins stressed that Alaska is totally dependent upon Washington, D.C. for roads. There should be consideration of determining how to help ourselves to some degree. Commissioner Perkins believed that in the future, the federal government will fund those roads of national interest, the NHS. If that occurred this year, Alaska would not have a road program for all roads not on the NHS. The recycling of tires, crumb rubber, was included in ISTEA. Some states were required to grind up tires and put in asphalt; this was a disaster. Therefore, last year Congress repealed any requirement for crumb rubber. With regard to light-weight studs, Commissioner Perkins said that all the tire dealers in Alaska had been contacted and there was little opposition. Most tire dealers mainly use light-weight studs. Also there should be a fine for those who leave their studs on in the summer. In response to the problem with dust control, Commissioner Perkins stated that DOT plans to chip seal as much as possible in places like Bethel and Galena. This should be done when repairing old roads or building new roads. Number 345 In response to Senator Lincoln, COMMISSIONER PERKINS explained that calcium chloride must be applied every year which is very expensive. Once a year is missed, the effect of the previous applications is lost which is the case on the Dalton Highway. There has not been enough money to apply calcium chloride on the Dalton Highway and so the base course is suffering. He believed that the application of calcium chloride would far exceed the financial capabilities of most communities. The solution would be to chip seal as many roads as possible. With regards to rural airports, the FAA allocates funds on a project by project basis as well as allocating funds from a discretionary fund. Prior to this project ranking system, the FAA practically determined what the state would do. The ranking system, which the FAA likes, should ensure that the most critical needs are addressed first. The project submittals must come out of the communities or other groups who so desire, then the submittals are scored. Commissioner Perkins agreed that some of the communities do not have the planning capability to do these projects, DOT wants to help those communities. He offered to describe the scoring in writing as well as addressing the Chenega situation. Number 298 SENATOR WILKEN commented that the City of Fairbanks does a miserable job of snow removal. In comparison, DOT/PF does an excellent job of snow removal in Fairbanks. He hoped that the department would review the decision not to maintain the Elliot Highway. Senator Wilken referred to a letter from Phil Anderson, Vice President of Exclusive Landscaping. Mr. Anderson discusses the fact that there are projects on the books that cannot be moved which he feels could be moved and provides the details for such. Senator Wilken requested that Commissioner Perkins review that information in order to respond to Mr. Anderson. Mr. Anderson as well as other persons have proposed a bipartisan commission board to review transportation allocations; that is being reviewed. In conclusion, Senator Wilken asked if the Legislature could do anything to help Senator Stevens' initiative for understanding Alaska's problem and helping to resolve that problem. COMMISSIONER PERKINS stated that a resolution would not hurt. Providing information to the Congressional delegation would be of much help and Commissioner Perkins recognized that he should keep the committee informed. He informed the committee that the new Commissioner of DOT was Rodney Slater. Senator Stevens did receive a commitment from Commissioner Slater to visit Alaska. Perhaps, a ground breaking could be arranged when he visits. In response to Senator Wilken, COMMISSIONER PERKINS explained that SOLAS is the international law of the sea regulations. Most of these regulations are the result of an accident. There was ferry in another country that rolled over and killed many hundreds of people. The ferry rolled because water seeped into the car deck and began sloshing back and forth until it rolled. Therefore, watertight doors are required for those serving internationally. Alaska classifies as international because of its service to Prince Rupert. Another example is the regulations for covered lifeboats which also effects the method of launch. Commissioner Perkins pointed out that the Coast Guard usually adopts these regulations a year or so later which means that Alaska would have to comply. All of the ships servicing Prince Rupert, except the Malaspina will be SOLAS equipped. Number 188 GARY HAYDEN , Director of the Marine Highway System, informed the committee that the Malaspina was not in compliance with a sprinkler system, fire alarm, and evacuation system. In addition to the stability issue, there is a safety management system fleetwide which will address the human factor of accidents. This system will result in a review of the fleet's operational procedures. Compliance must be met within the next 15 months. In response to Chairman Wilken, Mr. Hayden stated that the regulations are due because Prince Rupert is served. The Coast Guard has served notice that within five years, the Coast Guard will be adopting the SOLAS requirements for domestic voyages as well. This will also effect Washington because they serve a port in Canada. Therefore, it would be appropriate to begin a dialogue with the leadership of Alaska, Washington, and Canada regarding how transportation would be provided under these regulations. Alaska could force all traffic to Bellingham or Haines in order to eliminate the international status. However, the trip becomes more expensive and the trips would occur less frequently. SENATOR LINCOLN pointed out that the Edgerton Highway was to receive $7.1 million in 1998, but an accounting error at the national level resulted a reduction to $2.1 million. The Edgerton Highway is dangerous, especially for children because there is no shoulder. There is heavy logging traffic not to mention that traffic is increasing due to the improvements with connector roads. Senator Lincoln requested information on how the equipment fleet is being managed. Senator Lincoln noted that 30 percent of Alaskans are not connected by roads, and stressed that by land mass it is much greater. Number 084 COMMISSIONER PERKINS explained that the Edgerton Highway is the connecting route between the Richardson to Chitina which is paved. The road from Chitina to McCarthy is gravel. The Edgerton Highway allocation was reduced because the commissioner drove the highway. Commissioner Perkins said that the Edgerton is not in as bad a shape as others. Instead of tearing up the whole highway which has 75 percent good pavement surface, the frost heave areas will be fixed for only $2 million. The other $5 million will go towards other roads in worse shape with heavier traffic. Commissioner Perkins offered to send Senator Lincoln information regarding the traffic count on the Edgerton Highway. SENATOR LINCOLN interjected that there had been no upgrades on the shoulders. COMMISSIONER PERKINS said that only about 50 people live in Chitina with more in Kenny Lake. He offered to discuss that issue later as well as the equipment management. CHAIRMAN WARD inquired as to the details of a ferry surplus and the loss of airlines at the Anchorage Airport due to wintertime eave; is there a long-term plan? He thanked Commissioner Perkins and there being no further business before the committee, the meeting was adjourned at 2:05 p.m.